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1. Calculating Future Values. What is the future value of $1,560 in 13 years ass...

1. Calculating Future Values. What is the future value of $1,560 in 13 years assuming an interest rate of 9 percent compounded semiannually?
2. Calculating Future Values. Bucher Credit Bank is offering 5.3 percent compounded daily on its savings accounts. If you deposit $5,000 today, how much will you have in the account in five years? In 10 years? In 20 years?
3. Calculating Present Values. Suppose you are still committed to owning a $160,000 Ferrari (see Question 9). If you believe your mutual fund can achieve a 10.25 percent annual rate of return, and you want to buy the car in 10 years on the day you turn 30, how much must you invest today?
4. Calculating Future Values. You have just made your first $5,000 contribution to your individual retirement account. Assuming you earn a 10.5 percent rate of return and make no additional contributions, what will your account be worth when you retire in 45 years? What if you wait 10 years before contributing? (Does this suggest an investment strategy?)

Calculating the Number of Periods. You’re trying to save to buy a new $160,000 Ferrari. You have $25,000 today that can be invested at your bank. The bank pays 3.2 percent annual interest on its accounts. How long will it be before you have enough to buy the car?

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2. Calculating Future Values: Compute the future value of $1,000 compounded annually For: a. 10 years at 6 percent. b. 10 years at 9 percent. c. 20 years at 6 percent. d. Why is the interest earned in part (c) not twice the amount earned in part (a)?

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1. Stock Values. Metroplex Corporation will pay a $3.04 per share dividend next year. The company pledges to increase its dividend by 3.8 percent per year indefinitely. If you require an 11 percent return on your investment, how much will you pay for the company's stock today? 2. Stock Valuation. Suppose you know that a company's stock currently sells for $47 per share and the required return on the stock is 11 percent. You also know that the total return on the stock is evenly divided between a capital gains yield and a dividend yield. If it's the company's policy to always maintain a constant growth rate in its dividends, what is the current dividend per share? 3. Calculating Payback. What is the payback period for the following set of cash flows? Year Cash Flow 0 -$6,400 1 1,600 2 1,900 3 2,300 4 1,400 4. Calculating Payback. An investment project provides cash inflows of $765 per year for eight years. What is the project payback period if the initial cost is $2,400? What if the initial cost is $3,600? What if it is $6,500? 5. Calculating NPV and IRR. A project that provides annual cash flows of $28,500 for nine years costs $138,000 today. Is this a good project if the required return is 8 percent? What if it's 20 percent? At what discount rate would you be indifferent between accepting the project and rejecting it?

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Calculating Annuity Present Values [LO1] Beginning three months from now, you want to be able to withdraw $2,300 each quarter from your bank account to cover college expenses over the next four years. If the account pays 0.65 percent interest per quarter, you need to have $______ in your bank account today to meet your expense needs over the next four years

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Question 7: (1 point) QP4-48 Calculating Present Values A 5-year annuity of ten $5,500 semiannual payments will begin 9 years from now, with the first payment coming 9.5 years from now. The discount rate is 12 percent compounded monthly. Requirement 1: What is the value of this annuity five years from now? (For each step, you must insert rounded answers as directed in the problem. However, when doing the calculations for the next steps, use the complete number (without rounding) for the calculations. Do not include the dollar sign ($). Round your answer to 2 decimal places. (e.g., 32.16)) Present Value $ ____________ Requirement 2: What is the value three years from now? (For each step, you must insert rounded answers as directed in the problem. However, when doing the calculations for the next steps, use the complete number (without rounding) for the calculations. Do not include the dollar sign ($). Round your answer to 2 decimal places. (e.g., 32.16)) Present Value $ ____________ Requirement 3: What is the current value of the annuity? (For each step, you must insert rounded answers as directed in the problem. However, when doing the calculations for the next steps, use the complete number (without rounding) for the calculations. Do not include the dollar sign ($). Round your answer to 2 decimal places. (e.g., 32.16)) Present Value $ ____________

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Calculating Present Values [LO2] You have just received notification that you have won the $1 million first prize in the Centennial Lottery. However, the prize will be awarded on your 100th birthday (assuming you're around to collect), 80 years from now. If the appropriate discount rate is 10 percent, the present value of your windfall is $ _________. (Do not include the dollar sign ($). Round your answer to 2 decimal places.

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Calculating annuity values. Your company will generate $45,000 in cash flow each year for the next nine years from a new information database. The computer system needed to set up the database costs $260,000. If you can borrow the money to buy the computer system at 8.25 percent annual interest, can you afford the new system?

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